Are we in for the same fun?
----- Original Message -----
Sent: Saturday, July 22, 2000 8:03 PM
Subject: The Energy Looking Glass 2000july20 -- sdg&e letter
ANS-PIE While I was vacationing for a month, the electricity regulation pot boiled over here in lower Southern California. . BRIEFLY
1. San Diego Gas & Electric fulfilled the requirements some months ago for full de-regulation -- the first company in the nation to do so. All SDG&E - owned generators were sold.
2. This required SDG&E to purchase all their electricity on the open market. In the winter they could purchase electricity for 3.3 cents/kwhr, but beginning with the summer heat waves May2000 this became 9.2 cents/kwhr.
3. This hit the front pages, especially after SDG&E's parent (Sempra Energy) reported better earnings from the sale of their electricity operations.
4. Part of the problem is SDG&E was not buying as much under longterm contracts as is needed.
More to follow --IS ANYONE INTERESTED ????? REgards Gene Cramer
To Customers of San Diego Gas & Electric Company
This week, we convened an emergency summit of energy market participants to explore immediate market-based solutions to the high energy prices we are paying. Like you, we are extremely concerned about this situation and are working with state regulators, energy suppliers and retailers to identify near- and long-term solutions to the rising energy costs we all are experiencing.
In California's newly created competitive energy marketplace, San Diego Gas & Electric's role is as the delivery service provider. We no longer generate or price electricity: We are required to purchase it through the California Power Exchange and pass the cost on to our customers, with no mark-up. The price of power is now a function of supply and demand in the open market. Over the last several weeks, SDG&E customers have seen their electric bills rise sharply due to the significant increase in power demand in California and surrounding states.
All of our residential customers can soften the impact of their higher summer electric bills by taking advantage of our Level Pay plan. Under the plan, this summer's bills will be averaged out over the year and will be roughly the same as last year's. For our low-income customers, a number of direct-assistance programs are available to help them pay their bills, including a new special summer assistance fund, partially funded by SDG&E and our parent company, Sempra Energy.
We also encourage all of our customers to reduce their energy consumption and we have several programs in place to help. This contributes to lower costs, as well as a healthier energy market and environment in California.
Beginning next month, most of our customers will be receiving a check - about $260 for the typical resident - due to SDG&E's ability to make a quick transition under the state's electric industry restructuring plan. This will help lessen the burden of current high energy prices.
While these short-term measures will provide our customers with some relief, we will continue addressing the long-term issues, including the need for new generation and transmission facilities in the state to increase the energy supply here.
We thank you for your patience and understanding. If you have any questions about your SDG&E bill or the programs discussed here, please call our 24-hour-a-day, toll-free customer service line, 1-800-411-SDGE (7343).
SincereIv. Edwin A. Guiles President
San Diego Gas & Electric
Regards email@example.com whois Gene Cramer